LIC's Best Plans for Children's Future
For children, protection and disciplined investing matter more than fancy product names. Here is a practical approach.
Start with protection
Buy adequate term insurance on the earning parent. This guarantees the education goal even if income stops.
For investment
- For goals under 5–7 years: Use debt funds/PPF
- For 7+ years: Equity index funds or ULIPs with low charges if you prefer staying within LIC ecosystem
Popular LIC options
- LIC Jeevan Umang: For lifelong income after premiums; not ideal as pure child goal but good for guaranteed stream
- LIC New Children’s Money Back: Provides periodic payouts; consider only if you value guarantees over market returns
- LIC Term with Premium Waiver Rider: Ensures policy continues if the proposer dies
Recommended strategy
Combine a high-sum-assured term plan with SIPs in low-cost index funds for long-term goals. Add PPF for stability. Review yearly.